EX-99.1 2 exh_991.htm EXHIBIT 99.1

Exhibit 99.1

For Immediate Release: |  | April 21, 2020

SIMMONS REPORTS FIRST QUARTER 2020 EARNINGS

Pine Bluff, AR – Simmons First National Corporation (NASDAQ: SFNC) (the “Company” or “Simmons”) today announced net income of $77.2 million for the quarter ended March 31, 2020, compared to $47.7 million for the same period in 2019, an increase of $29.5 million, or 61.9%. Diluted earnings per share were $0.68, an increase of $0.17, or 33.3%, compared to the same period in the prior year. Included in first quarter 2020 results were $965,000 in net after-tax merger-related and branch right-sizing costs as well as a $4.4 million after-tax gain associated with the sale of branches in south Texas.

Excluding the impact of these items, core earnings were $73.8 million for the quarter ended March 31, 2020, compared to $49.1 million for the quarter ended March 31, 2019, an increase of $24.8 million, or 50.5%. Core diluted earnings per share were $0.65, an increase of $0.12, or 22.6%, from the same period in 2019.

“I am very proud of our team and their demonstration of our community banking values during these trying times,” said George A. Makris, Jr., chairman and CEO of Simmons First National Corporation. “Many of our associates could not work from home because they were serving our customers who needed our help.”

Makris continued, “On behalf of Simmons Bank, our customers, and the communities we serve, I would like to thank our healthcare professionals and other front-line workers, along with our federal, state and local officials, who have all responded quickly and with great care to the challenges presented by the pandemic. We believe we are well positioned to help our customers and communities as we come out of these unprecedented times. We have very strong liquidity and capital that we believe should assist Simmons once again in weathering critical economic times. The diversification in our risk profile along with a conservative risk appetite has helped to accommodate the needs of the communities we serve while providing value to our shareholders.”

Selected Highlights: | 1st Qtr 2020 | 4th Qtr 2019 | 1st Qtr 2019
Net income | $77.2 million | $52.7 million | $47.7 million
Diluted earnings per share | $0.68 | $0.49 | $0.51
Return on avg assets | 1.48% | 1.04% | 1.19%
Return on avg common equity | 10.83% | 8.01% | 8.60%
Return on tangible common equity (1) | 19.00% | 14.62% | 15.34%
Core earnings (2) | $73.8 million | $71.1 million | $49.1 million
Core diluted earnings per share (2) | $0.65 | $0.66 | $0.53
Core return on avg assets (2) | 1.42% | 1.41% | 1.22%
Core return on avg common equity (2) | 10.35% | 10.80% | 8.85%
Core return on tangible common equity (1)(2) | 18.19% | 19.49% | 15.76%
Efficiency ratio (3) | 56.38% | 52.63% | 56.76%

| (1) | Return on tangible common equity excludes goodwill and other intangible assets and is a non-GAAP measurement. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.

| (2) | Core figures exclude non-core items and are non-GAAP measurements. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.

| (3) | Efficiency ratio is noninterest expense before foreclosed property expense, amortization of intangibles as a percent of net interest income (fully taxable equivalent) and non-interest revenues, excluding gains and losses from securities transactions and non-core items, and is a non-GAAP measurement. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.

P.O. BOX 7009 501 MAIN STREET PINE BLUFF, ARKANSAS 71611-7009 (870) 541-1000 www.simmonsbank.com

Loans

($ in billions) | 1st Qtr 2020 | 4th Qtr 2019 | 1st Qtr 2019
Total loans | $14.37 | $14.43 | $11.74

Total loans were $14.4 billion at March 31, 2020, an increase of $2.6 billion, or 22.4%, compared to March 31, 2019, primarily due to the Reliance Bancshares, Inc. and The Landrum Company mergers completed during 2019 (“2019 mergers”). On a linked-quarter basis (March 31, 2020 compared to December 31, 2019), total loans decreased $51.4 million, or 0.4%. During the first quarter 2020, $115 million in loan balances were reclassified associated with the four branches held for sale in Colorado.

Deposits

($ in billions) | 1st Qtr 2020 | 4th Qtr 2019 | 1st Qtr 2019
Total deposits | $15.6 | $16.1 | $12.0
Non-time deposits | $12.4 | $12.8 | $9.3
Time deposits | $3.2 | $3.3 | $2.7

Total deposits were $15.6 billion at March 31, 2020, an increase of $3.6 billion, or 29.8%, since March 31, 2019, primarily due to the 2019 mergers, but partially offset by the reclassification of $58.4 million of deposits associated with the Colorado branches held for sale.

Net Interest Income

| 1st Qtr 2020 | 4th Qtr 2019 | 3rd Qtr 2019 | 2nd Qtr 2019 | 1st Qtr 2019
Loan yield (1) | 5.19% | 5.43% | 5.47% | 5.58% | 5.53%
Core loan yield (1) (2) | 4.86% | 5.00% | 5.19% | 5.26% | 5.29%
Security yield (1) | 2.63% | 2.73% | 2.87% | 3.06% | 3.11%
Cost of interest bearing deposits | 1.03% | 1.22% | 1.40% | 1.37% | 1.31%
Cost of deposits (3) | 0.80% | 0.94% | 1.09% | 1.07% | 1.02%
Cost of borrowed funds | 2.06% | 2.30% | 2.52% | 2.50% | 2.73%
Net interest margin (1) | 3.68% | 3.78% | 3.82% | 3.94% | 3.86%
Core net interest margin (1) (2) | 3.42% | 3.44% | 3.59% | 3.67% | 3.68%

| (1) | Fully tax equivalent using an effective tax rate of 26.135%.

| (2) | Core loan yield and core net interest margin exclude accretion and are non-GAAP measurements. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.

| (3) | Includes non-interest bearing deposits.

The Company’s net interest income for the first quarter of 2020 was $167.5 million, an increase of $31.5 million, or 23.2%, from the same period of 2019 as a result of the 2019 mergers. Included in interest income was the yield accretion recognized on loans acquired of $11.8 million and $6.7 million for the first quarters of 2020 and 2019, respectively.

Net interest margin (FTE) was 3.68% for the quarter ended March 31, 2020, while core net interest margin, which excludes the accretion, was 3.42% for the same period. The decrease in the net interest margin during the first quarter of 2020 was due to a timing difference between the Company’s ability to manage the rate decrease in its variable rate loan portfolio and its repricing of interest bearing deposits in response to the substantial interest rate cuts by the Federal Open Market Committee of the Federal Reserve in March.

Non-Interest Income

Non-interest income for the first quarter of 2020 was $82.4 million, an increase of $47.6 million compared to the same period in the previous year. During the first quarter 2020, the Company sold approximately $1.0 billion in securities resulting in a gain of $30.1 million. In addition, the Company recognized a $5.9 million gain associated with the sale of the branches in south Texas recorded in Other Income, which the Company considers a non-core item.

Selected Non-Interest Income Items ($ in millions) | 1st Qtr 2020 | 4th Qtr 2019 | 3rd Qtr 2019 | 2nd Qtr 2019 | 1st Qtr 2019
Service charges on deposit accounts | $13.3 | $13.3 | $10.8 | $10.6 | $10.1
Mortgage lending income | $5.0 | $4.0 | $4.5 | $3.7 | $2.8
SBA lending income | $0.3 | $0.3 | $1.0 | $0.9 | $0.5
Debit and credit card fees | $7.9 | $8.9 | $7.1 | $7.2 | $6.1
Gain on sale of securities | $32.1 | $0.4 | $7.4 | $2.8 | $2.7
Other income | $12.8 | $7.1 | $44.7 | $6.1 | $4.2
Core other income(1) | $6.9 | $7.1 | $44.7 | $6.1 | $4.2

| (1) | Core figures exclude non-core items and are non-GAAP measurements. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.

Non-Interest Expense

Non-interest expense for the first quarter of 2020 was $125.8 million, an increase of $24.4 million compared to the first quarter of 2019. Included in this quarter were $1.3 million of pre-tax non-core items for merger-related expenses and branch right-sizing costs. Excluding these expenses, core non-interest expense was $124.5 million for the first quarter of 2020, an increase of $25.0 million compared to the same period in 2019, primarily the result of the 2019 mergers and additional software and technology costs related to the Next Generation Banking (“NGB”) initiative.

The efficiency ratio for the first quarter of 2020 was 56.38% compared to 56.76% for the same period in 2019.

Selected Non-Interest Expense Items ($ in millions) | 1st Qtr 2020 | 4th Qtr 2019 | 3rd Qtr 2019 | 2nd Qtr 2019 | 1st Qtr 2019
Salaries and employee benefits | $67.9 | $63.2 | $52.1 | $56.1 | $56.4
Merger related costs | $1.1 | $24.8 | $2.6 | $7.5 | $1.5
Other operating expenses | $38.8 | $38.0 | $37.9 | $32.9 | $30.1
Core salaries and employee benefits(1) | $67.9 | $63.2 | $51.9 | $53.2 | $56.0
Core merger related costs(1) | - | - | - | - | -
Core other operating expenses(1) | $38.6 | $38.0 | $37.8 | $30.0 | $30.1

| (1) | Core figures exclude non-core items and are non-GAAP measurements. Please see “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below.

Asset Quality

| 1st Qtr 2020 | 4th Qtr 2019 | 3rd Qtr 2019 | 2nd Qtr 2019 | 1st Qtr 2019
Allowance for credit losses to total loans | 1.69% | 0.47% | 0.51% | 0.49% | 0.52%
Allowance for credit losses to non-performing loans | 154% | 74% | 78% | 60% | 63%
Non-performing loans to total loans | 1.10% | 0.64% | 0.65% | 0.81% | 0.81%
Net charge-off ratio (annualized) | 0.07% | 0.09% | 0.59% | 0.11% | 0.19%
Net charge-off ratio YTD (annualized) | 0.07% | 0.24% | 0.30% | 0.15% | 0.19%

At March 31, 2020, the allowance for credit losses was $243.2 million. Provision for credit losses for the first quarter of 2020 was $26.1 million.

Foreclosed Assets and Other Real Estate Owned

At March 31, 2020, foreclosed assets and other real estate owned were $20.8 million, an increase of $1.9 million, or 9.8%, compared to the same period in 2019 and an increase of $1.7 million, or 8.8% from December 31, 2019. The increase from year end was primarily due the closure of six branches in conjunction with the February 2020 system conversion of Landmark Bank into Simmons Bank. The composition of these assets is divided into three types:

($ in millions) | 1st Qtr 2020 | 4th Qtr 2019 | 3rd Qtr 2019 | 2nd Qtr 2019 | 1st Qtr 2019
Closed bank branches, branch sites & associate relocation | $8.8 | $5.7 | $5.9 | $6.5 | $7.6
Foreclosed assets – acquired | $9.2 | $10.3 | $10.1 | $13.3 | $6.2
Foreclosed assets – legacy | $2.8 | $3.1 | $3.6 | $5.0 | $5.2

Capital

| 1st Qtr 2020 | 4th Qtr 2019 | 3rd Qtr 2019 | 2nd Qtr 2019 | 1st Qtr 2019
Stockholders’ equity to total assets | 13.7% | 14.1% | 14.3% | 13.8% | 14.3%
Tangible common equity to tangible assets | 8.4% | 9.0% | 9.1% | 8.5% | 9.0%
Regulatory tier 1 leverage ratio | 9.0% | 9.6% | 9.1% | 8.9% | 9.1%
Regulatory total risk-based capital ratio | 14.1% | 13.7% | 13.2% | 12.7% | 13.6%

At March 31, 2020, common stockholders' equity was $2.8 billion. Book value per share was $26.11 and tangible book value per share was $15.22 at March 31, 2020, compared to $26.30 and $15.89, respectively, at December 31, 2019. The ratio of stockholders’ equity to total assets was 13.7% at March 31, 2020, compared to 14.1% at December 31, 2019 while the tangible common equity to tangible assets was 8.4% at March 31, 2020, compared to 9.0% from the previous year-end.

Effective March 4, 2020, the Company’s board of directors approved an amendment to the Company’s stock repurchase program originally approved on October 17, 2019 to increase the amount of common stock that may be repurchased under the program from a maximum of $60 million to $180 million. During the first quarter of 2020, the Company repurchased approximately 4,900,000 shares of its commons stock at an average price of $18.94. No shares have been repurchased since March 31, 2020. Market conditions and our capital needs will drive the decisions regarding additional, future stock repurchases.

Current Expected Credit Losses (“CECL”)

In 2016, new accounting guidance was issued that introduced a new credit loss methodology, the CECL methodology, which requires earlier recognition of credit losses, while also providing additional transparency about credit risk.

The CECL methodology replaces the current incurred loss methodology with a lifetime “expected credit loss” measurement objective for loans, held-to-maturity debt securities and other receivables measured at amortized cost at the time the financial asset is originated or acquired. This standard requires the consideration of historical loss experience and current conditions adjusted for reasonable and supportable economic forecasts. The Company has elected to utilize a blended macroeconomic scenario using a one-year forecast horizon with a subsequent reversion to historical loss experience. Within the life cycle of a loan or other financial asset, this new guidance will generally result in the earlier recognition of the provision for credit losses and the related allowance for credit losses than previous practice. The CECL guidance was effective for the Company as of January 1, 2020. Upon adoption, the Company recorded an additional allowance for credit losses of approximately $151 million and an adjustment to the reserve for unfunded commitments of $24 million with a related $128 million as an adjustment to retained earnings, net of income taxes. The adjustment was based upon the Company’s analysis of current conditions, assumptions and economic forecasts.

COVID-19 Impact

In March 2020, Congress passed the Coronavirus Aid, Relief and Economic Security (“CARES”) Act, which is designed to provide comprehensive relief to individuals and businesses following the unprecedented impact of the COVID-19 pandemic. The CARES Act includes approximately $2 trillion in assistance and a key component is the Paycheck Protection Program (“PPP”), which provides 100% federally guaranteed loans for small businesses to cover up to eight weeks of payroll costs to retain their workforce and assist with mortgage interest, rent and utilities. Notably, these small business loans may be forgiven if borrowers maintain their payrolls and satisfy certain other conditions during the crisis.

In response to the economic hardships associated with the COVID-19 pandemic, as of April 16th, the Company has obtained approval from the SBA for over 3,100 PPP loans totaling over $745 million for existing and new customers. The Company is continually monitoring the PPP and making the necessary adjustments to its own operations.

In addition, the Company has completed or is in the process of modifying more than 3,600 loans totaling over $2.8 billion. The Company is dedicated to supporting its customers and communities throughout this period of uncertainty.

In March and in response to the pandemic, the Company announced temporary closure of 52 branches and has been focusing on the enhanced digital banking experience.

The Company has implemented business continuity plans to help ensure that customers have adequate access to banking services while at the same time working to protect associates through heightened safety procedures. As of March 31, 2020, the Company has approximately $4.7 billion in liquidity sources available and is well capitalized, which management believes should allow the Company to approach the crisis from a position of strength.

Simmons First National Corporation

Simmons First National Corporation is a financial holding company headquartered in Pine Bluff, Arkansas, with total consolidated assets of approximately $20.8 billion as of March 31, 2020, conducting financial operations in Arkansas, Colorado, Illinois, Kansas, Missouri, Oklahoma, Tennessee and Texas. The Company, through its subsidiaries, offers comprehensive financial solutions delivered with a client-centric approach. The Company’s common stock trades on the NASDAQ Market under the symbol “SFNC.”

Conference Call

Management will conduct a live conference call to review this information beginning at 9:00 a.m. CDT today, Tuesday, April 21, 2020. Interested persons can listen to this call by dialing toll-free 1-866-298-7926 (United States and Canada only) and asking for the Simmons First National Corporation conference call, conference ID 5979394. In addition, the call will be available live or in recorded version on the Company’s website at www.simmonsbank.com.

Non-GAAP Financial Measures

This press release contains financial information determined by methods other than in accordance with generally accepted accounting principles (GAAP). The Company’s management uses these non-GAAP financial measures in their analysis of the Company’s performance. These measures adjust GAAP performance measures to, among other things, include the tax benefit associated with revenue items that are tax-exempt, as well as exclude from income available to common shareholders certain expenses related to significant non-core activities, including merger-related expenses, gain on sale of branches and branch right-sizing expenses. In addition, the Company also presents certain figures based on tangible common stockholders’ equity and tangible book value, which exclude goodwill and other intangible assets. The Company’s management believes that these non-GAAP financial measures are useful to investors because they present the results of the Company’s ongoing operations without the effect of mergers or other items not central to the Company’s ongoing business, as well as normalizing for tax effects. Management, therefore, believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company’s core businesses. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables of this release.

Forward-Looking Statements

Some of the statements in this news release may not be based on historical facts and should be considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by reference to future periods or by the use of forward-looking terminology, such as “believe,” “budget,” “expect,” “foresee,” “anticipate,” “intend,” “indicate,” “target,” “estimate,” “plan,” “project,” “continue,” “contemplate,” “positions,” “prospects,” “predict,” or “potential,” by future conditional verbs such as “will,” “would,” “should,” “could,” “might” or “may,” or by variations of such words or by similar expressions. These forward-looking statements include, without limitation, statements relating to Simmons’ future growth, revenue, assets, asset quality, profitability, net interest margin, non-interest revenue, share repurchase program, acquisition strategy, NGB initiative, the Company’s ability to recruit and retain key employees, the adequacy of the allowance for credit losses, and the ability of the Company to manage the impact of the COVID-19 pandemic. Any forward-looking statement speaks only as of the date of this news release, and Simmons undertakes no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date of this news release. By nature, forward-looking statements are based on various assumptions and involve inherent risk and uncertainties. Various factors, including, but not limited to, changes in economic conditions, credit quality, interest rates, loan demand, deposit flows, real estate values, the assumptions used in making the forward-looking statements, the securities markets generally or the price of Simmons common stock specifically, and information technology affecting the financial industry; the effects of the COVID-19 pandemic on, among other things, the Company’s operations, liquidity, and credit quality; general economic and market conditions; unemployment; potential claims, damages, and fines related to litigation or government actions, including litigation or actions arising from the Company’s participation in and administration of programs related to the COVID-19 pandemic (including, among other things, the CARES Act); changes in accounting principles relating to loan loss recognition (CECL); the Company’s ability to manage and successfully integrate its mergers and acquisitions; cyber threats, attacks or events; reliance on third parties for key services; and other factors, many of which are beyond the control of the Company, could cause actual results to differ materially from those contemplated by the forward-looking statements. Additional information on factors that might affect the Company’s financial results is included in its Form 10-K for the year ended December 31, 2019, which has been filed with, and is available from, the U.S. Securities and Exchange Commission.

####

FOR MORE INFORMATION CONTACT:

Stephen C. Massanelli

EVP, Chief Administrative Officer and Investor Relations Officer

Simmons First National Corporation

steve.massanelli@simmonsbank.com

Simmons First National Corporation |  |  |  |  |  |  |  |  |  | SFNC
Consolidated End of Period Balance Sheets |  |  |  |  |  |  |  |  |  |
For the Quarters Ended |  | Mar 31 |  | Dec 31 |  | Sep 30 |  | Jun 30 |  | Mar 31
(Unaudited) |  | 2020 |  | 2019 |  | 2019 |  | 2019 |  | 2019
($ in thousands) |  |  |  |  |  |  |  |  |  |
ASSETS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and non-interest bearing balances due from banks |  | $ | 244,123 |  |  | $ | 277,208 |  |  | $ | 161,440 |  |  | $ | 145,491 |  |  | $ | 151,112 |
Interest bearing balances due from banks and federal funds sold |  |  | 1,493,076 |  |  |  | 719,415 |  |  |  | 368,530 |  |  |  | 509,765 |  |  |  | 340,049 |
Cash and cash equivalents |  |  | 1,737,199 |  |  |  | 996,623 |  |  |  | 529,970 |  |  |  | 655,256 |  |  |  | 491,161 |
Interest bearing balances due from banks - time |  |  | 4,309 |  |  |  | 4,554 |  |  |  | 5,041 |  |  |  | 5,041 |  |  |  | 4,684 |
Investment securities - held-to-maturity |  |  | 53,968 |  |  |  | 40,927 |  |  |  | 42,237 |  |  |  | 47,455 |  |  |  | 61,435 |
Investment securities - available-for-sale |  |  | 2,466,640 |  |  |  | 3,288,343 |  |  |  | 2,210,931 |  |  |  | 2,191,573 |  |  |  | 2,092,637 |
Mortgage loans held for sale |  |  | 49,984 |  |  |  | 58,102 |  |  |  | 50,099 |  |  |  | 34,999 |  |  |  | 18,480 |
Other assets held for sale |  |  | 115,315 |  |  |  | 260,332 |  |  |  | 383 |  |  |  | 397 |  |  |  | 397 |
Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans |  |  | 14,374,277 |  |  |  | 14,425,704 |  |  |  | 13,003,549 |  |  |  | 13,128,125 |  |  |  | 11,742,049 |
Allowance for credit losses on loans |  |  | (243,195 | ) |  |  | (68,244 | ) |  |  | (66,590 | ) |  |  | (64,179 | ) |  |  | (60,555 | )
Net loans |  |  | 14,131,082 |  |  |  | 14,357,460 |  |  |  | 12,936,959 |  |  |  | 13,063,946 |  |  |  | 11,681,494 |
Premises and equipment |  |  | 484,990 |  |  |  | 492,384 |  |  |  | 378,678 |  |  |  | 370,551 |  |  |  | 333,740 |
Foreclosed assets and other real estate owned |  |  | 20,805 |  |  |  | 19,121 |  |  |  | 19,576 |  |  |  | 24,761 |  |  |  | 18,952 |
Interest receivable |  |  | 57,039 |  |  |  | 62,707 |  |  |  | 53,966 |  |  |  | 54,781 |  |  |  | 51,796 |
Bank owned life insurance |  |  | 255,197 |  |  |  | 254,152 |  |  |  | 234,655 |  |  |  | 233,345 |  |  |  | 192,736 |
Goodwill |  |  | 1,064,978 |  |  |  | 1,055,520 |  |  |  | 926,648 |  |  |  | 926,450 |  |  |  | 845,687 |
Other intangible assets |  |  | 121,673 |  |  |  | 127,340 |  |  |  | 101,149 |  |  |  | 104,096 |  |  |  | 88,694 |
Other assets |  |  | 278,173 |  |  |  | 241,578 |  |  |  | 268,219 |  |  |  | 224,784 |  |  |  | 209,746 |
Total assets |  | $ | 20,841,352 |  |  | $ | 21,259,143 |  |  | $ | 17,758,511 |  |  | $ | 17,937,435 |  |  | $ | 16,091,639 |
LIABILITIES AND STOCKHOLDERS' EQUITY |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-interest bearing transaction accounts |  | $ | 3,572,244 |  |  | $ | 3,741,093 |  |  | $ | 3,044,330 |  |  | $ | 2,954,032 |  |  | $ | 2,674,034 |
Interest bearing transaction accounts and savings deposits |  |  | 8,840,678 |  |  |  | 9,090,878 |  |  |  | 7,337,571 |  |  |  | 7,258,005 |  |  |  | 6,666,823 |
Time deposits |  |  | 3,146,811 |  |  |  | 3,276,969 |  |  |  | 3,086,108 |  |  |  | 3,304,176 |  |  |  | 2,648,674 |
Total deposits |  |  | 15,559,733 |  |  |  | 16,108,940 |  |  |  | 13,468,009 |  |  |  | 13,516,213 |  |  |  | 11,989,531 |
Federal funds purchased and securities sold |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
under agreements to repurchase |  |  | 377,859 |  |  |  | 150,145 |  |  |  | 116,536 |  |  |  | 130,470 |  |  |  | 120,213 |
Other borrowings |  |  | 1,396,829 |  |  |  | 1,297,599 |  |  |  | 1,098,395 |  |  |  | 1,324,094 |  |  |  | 1,169,989 |
Subordinated notes and debentures |  |  | 388,396 |  |  |  | 388,260 |  |  |  | 354,223 |  |  |  | 354,132 |  |  |  | 354,041 |
Other liabilities held for sale |  |  | 58,405 |  |  |  | 159,853 |  |  |  | - |  |  |  | 162 |  |  |  | 162 |
Accrued interest and other liabilities |  |  | 214,730 |  |  |  | 165,422 |  |  |  | 174,277 |  |  |  | 142,851 |  |  |  | 155,382 |
Total liabilities |  |  | 17,995,952 |  |  |  | 18,270,219 |  |  |  | 15,211,440 |  |  |  | 15,467,922 |  |  |  | 13,789,318 |
Stockholders' equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Preferred stock |  |  | 767 |  |  |  | 767 |  |  |  | - |  |  |  | - |  |  |  | - |
Common stock |  |  | 1,090 |  |  |  | 1,136 |  |  |  | 966 |  |  |  | 966 |  |  |  | 926 |
Surplus |  |  | 2,026,420 |  |  |  | 2,117,282 |  |  |  | 1,708,058 |  |  |  | 1,705,262 |  |  |  | 1,599,566 |
Undivided profits |  |  | 778,893 |  |  |  | 848,848 |  |  |  | 814,338 |  |  |  | 747,969 |  |  |  | 707,829 |
Accumulated other comprehensive income (loss): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unrealized accretion (depreciation) on AFS securities |  |  | 38,230 |  |  |  | 20,891 |  |  |  | 23,709 |  |  |  | 15,316 |  |  |  | (6,000 | )
Total stockholders' equity |  |  | 2,845,400 |  |  |  | 2,988,924 |  |  |  | 2,547,071 |  |  |  | 2,469,513 |  |  |  | 2,302,321 |
Total liabilities and stockholders' equity |  | $ | 20,841,352 |  |  | $ | 21,259,143 |  |  | $ | 17,758,511 |  |  | $ | 17,937,435 |  |  | $ | 16,091,639 |

Page 1

Simmons First National Corporation |  |  |  |  |  |  |  |  |  | SFNC
Consolidated Statements of Income - Quarter-to-Date |  |  |  |  |  |  |  |  |  |
For the Quarters Ended |  | Mar 31 |  | Dec 31 |  | Sep 30 |  | Jun 30 |  | Mar 31
(Unaudited) |  | 2020 |  | 2019 |  | 2019 |  | 2019 |  | 2019
($ in thousands, except per share data) |  |  |  |  |  |  |  |  |  |
INTEREST INCOME |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans |  | $ | 187,566 |  |  | $ | 193,402 |  |  | $ | 179,971 |  |  | $ | 178,122 |  |  | $ | 159,440 |
Interest bearing balances due from banks and federal funds sold |  |  | 2,441 |  |  |  | 2,625 |  |  |  | 1,586 |  |  |  | 1,121 |  |  |  | 2,154 |
Investment securities |  |  | 18,943 |  |  |  | 16,962 |  |  |  | 14,467 |  |  |  | 15,666 |  |  |  | 16,281 |
Mortgage loans held for sale |  |  | 281 |  |  |  | 402 |  |  |  | 382 |  |  |  | 332 |  |  |  | 210 |
TOTAL INTEREST INCOME |  |  | 209,231 |  |  |  | 213,391 |  |  |  | 196,406 |  |  |  | 195,241 |  |  |  | 178,085 |
INTEREST EXPENSE |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Time deposits |  |  | 13,323 |  |  |  | 16,198 |  |  |  | 15,573 |  |  |  | 14,606 |  |  |  | 12,320 |
Other deposits |  |  | 17,954 |  |  |  | 20,331 |  |  |  | 21,363 |  |  |  | 20,190 |  |  |  | 18,430 |
Federal funds purchased and securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
sold under agreements to repurchase |  |  | 759 |  |  |  | 368 |  |  |  | 249 |  |  |  | 257 |  |  |  | 136 |
Other borrowings |  |  | 4,877 |  |  |  | 4,615 |  |  |  | 5,381 |  |  |  | 6,219 |  |  |  | 6,793 |
Subordinated notes and debentures |  |  | 4,835 |  |  |  | 4,813 |  |  |  | 4,576 |  |  |  | 4,541 |  |  |  | 4,411 |
TOTAL INTEREST EXPENSE |  |  | 41,748 |  |  |  | 46,325 |  |  |  | 47,142 |  |  |  | 45,813 |  |  |  | 42,090 |
NET INTEREST INCOME |  |  | 167,483 |  |  |  | 167,066 |  |  |  | 149,264 |  |  |  | 149,428 |  |  |  | 135,995 |
Provision for credit losses |  |  | 26,134 |  |  |  | 4,903 |  |  |  | 21,973 |  |  |  | 7,079 |  |  |  | 9,285 |
NET INTEREST INCOME AFTER PROVISION |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FOR CREDIT LOSSES |  |  | 141,349 |  |  |  | 162,163 |  |  |  | 127,291 |  |  |  | 142,349 |  |  |  | 126,710 |
NON-INTEREST INCOME |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trust income |  |  | 7,151 |  |  |  | 7,430 |  |  |  | 6,108 |  |  |  | 5,794 |  |  |  | 5,708 |
Service charges on deposit accounts |  |  | 13,328 |  |  |  | 13,332 |  |  |  | 10,825 |  |  |  | 10,557 |  |  |  | 10,068 |
Other service charges and fees |  |  | 1,588 |  |  |  | 1,915 |  |  |  | 1,308 |  |  |  | 1,312 |  |  |  | 1,289 |
Mortgage lending income |  |  | 5,046 |  |  |  | 4,029 |  |  |  | 4,509 |  |  |  | 3,656 |  |  |  | 2,823 |
SBA lending income |  |  | 296 |  |  |  | 321 |  |  |  | 956 |  |  |  | 895 |  |  |  | 497 |
Investment banking income |  |  | 877 |  |  |  | 822 |  |  |  | 513 |  |  |  | 360 |  |  |  | 618 |
Debit and credit card fees |  |  | 7,914 |  |  |  | 8,920 |  |  |  | 7,059 |  |  |  | 7,212 |  |  |  | 6,098 |
Bank owned life insurance income |  |  | 1,298 |  |  |  | 1,411 |  |  |  | 1,302 |  |  |  | 1,260 |  |  |  | 795 |
Gain on sale of securities, net |  |  | 32,095 |  |  |  | 377 |  |  |  | 7,374 |  |  |  | 2,823 |  |  |  | 2,740 |
Other income |  |  | 12,801 |  |  |  | 7,073 |  |  |  | 44,721 |  |  |  | 6,065 |  |  |  | 4,156 |
TOTAL NON-INTEREST INCOME |  |  | 82,394 |  |  |  | 45,630 |  |  |  | 84,675 |  |  |  | 39,934 |  |  |  | 34,792 |
NON-INTEREST EXPENSE |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Salaries and employee benefits |  |  | 67,924 |  |  |  | 63,235 |  |  |  | 52,065 |  |  |  | 56,128 |  |  |  | 56,367 |
Occupancy expense, net |  |  | 9,510 |  |  |  | 9,272 |  |  |  | 8,342 |  |  |  | 6,919 |  |  |  | 7,475 |
Furniture and equipment expense |  |  | 5,723 |  |  |  | 5,758 |  |  |  | 4,898 |  |  |  | 4,206 |  |  |  | 3,358 |
Other real estate and foreclosure expense |  |  | 325 |  |  |  | 1,089 |  |  |  | 1,125 |  |  |  | 591 |  |  |  | 637 |
Deposit insurance |  |  | 2,475 |  |  |  | (134 | ) |  |  | - |  |  |  | 2,510 |  |  |  | 2,040 |
Merger-related costs |  |  | 1,068 |  |  |  | 24,831 |  |  |  | 2,556 |  |  |  | 7,522 |  |  |  | 1,470 |
Other operating expenses |  |  | 38,788 |  |  |  | 38,044 |  |  |  | 37,879 |  |  |  | 32,867 |  |  |  | 30,062 |
TOTAL NON-INTEREST EXPENSE |  |  | 125,813 |  |  |  | 142,095 |  |  |  | 106,865 |  |  |  | 110,743 |  |  |  | 101,409 |
NET INCOME BEFORE INCOME TAXES |  |  | 97,930 |  |  |  | 65,698 |  |  |  | 105,101 |  |  |  | 71,540 |  |  |  | 60,093 |
Provision for income taxes |  |  | 20,694 |  |  |  | 12,976 |  |  |  | 23,275 |  |  |  | 15,616 |  |  |  | 12,398 |
NET INCOME |  |  | 77,236 |  |  |  | 52,722 |  |  |  | 81,826 |  |  |  | 55,924 |  |  |  | 47,695 |
Preferred stock dividends |  |  | 13 |  |  |  | 13 |  |  |  | - |  |  |  | 326 |  |  |  | - |
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS |  | $ | 77,223 |  |  | $ | 52,709 |  |  | $ | 81,826 |  |  | $ | 55,598 |  |  | $ | 47,695 |
BASIC EARNINGS PER SHARE |  | $ | 0.68 |  |  | $ | 0.49 |  |  | $ | 0.85 |  |  | $ | 0.58 |  |  | $ | 0.52 |
DILUTED EARNINGS PER SHARE |  | $ | 0.68 |  |  | $ | 0.49 |  |  | $ | 0.84 |  |  | $ | 0.58 |  |  | $ | 0.51 |

Page 2

Simmons First National Corporation |  |  |  |  |  |  |  | SFNC
Consolidated Risk-Based Capital |  |  |  |  |  |  |  |  |  |
For the Quarters Ended |  | Mar 31 |  | Dec 31 |  | Sep 30 |  | Jun 30 |  | Mar 31
(Unaudited) |  | 2020 |  | 2019 |  | 2019 |  | 2019 |  | 2019
($ in thousands) |  |  |  |  |  |  |  |  |  |
Tier 1 capital |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Stockholders' equity |  | $ | 2,845,400 |  |  | $ | 2,988,924 |  |  | $ | 2,547,071 |  |  | $ | 2,469,513 |  |  | $ | 2,302,321 |
CECL transition provision (1) |  |  | 134,558 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Disallowed intangible assets, net of deferred tax |  |  | (1,164,038 | ) |  |  | (1,160,079 | ) |  |  | (1,013,309 | ) |  |  | (1,001,676 | ) |  |  | (910,122 | )
Unrealized (gain) loss on AFS securities |  |  | (38,230 | ) |  |  | (20,891 | ) |  |  | (23,709 | ) |  |  | (15,316 | ) |  |  | 6,000 |
Total Tier 1 capital |  |  | 1,777,690 |  |  |  | 1,807,954 |  |  |  | 1,510,053 |  |  |  | 1,452,521 |  |  |  | 1,398,199 |
Tier 2 capital |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trust preferred securities and subordinated debt |  |  | 388,396 |  |  |  | 388,260 |  |  |  | 354,223 |  |  |  | 354,132 |  |  |  | 354,041 |
Qualifying allowance for loan losses and |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
reserve for unfunded commitments |  |  | 96,015 |  |  |  | 76,644 |  |  |  | 74,455 |  |  |  | 72,044 |  |  |  | 67,771 |
Total Tier 2 capital |  |  | 484,411 |  |  |  | 464,904 |  |  |  | 428,678 |  |  |  | 426,176 |  |  |  | 421,812 |
Total risk-based capital |  | $ | 2,262,101 |  |  | $ | 2,272,858 |  |  | $ | 1,938,731 |  |  | $ | 1,878,697 |  |  | $ | 1,820,011 |
Risk weighted assets |  | $ | 16,012,233 |  |  | $ | 16,554,081 |  |  | $ | 14,725,571 |  |  | $ | 14,825,253 |  |  | $ | 13,364,636 |
Adjusted average assets for leverage ratio |  | $ | 19,832,219 |  |  | $ | 18,852,798 |  |  | $ | 16,681,527 |  |  | $ | 16,382,520 |  |  | $ | 15,423,961 |
Ratios at end of quarter |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity to assets |  |  | 13.65 | % |  |  | 14.06 | % |  |  | 14.34 | % |  |  | 13.77 | % |  |  | 14.31 | %
Tangible common equity to tangible assets (2) |  |  | 8.44 | % |  |  | 8.99 | % |  |  | 9.08 | % |  |  | 8.51 | % |  |  | 9.02 | %
Common equity Tier 1 ratio (CET1) |  |  | 11.10 | % |  |  | 10.92 | % |  |  | 10.25 | % |  |  | 9.80 | % |  |  | 10.46 | %
Tier 1 leverage ratio |  |  | 8.96 | % |  |  | 9.59 | % |  |  | 9.05 | % |  |  | 8.87 | % |  |  | 9.07 | %
Tier 1 risk-based capital ratio |  |  | 11.10 | % |  |  | 10.92 | % |  |  | 10.25 | % |  |  | 9.80 | % |  |  | 10.46 | %
Total risk-based capital ratio |  |  | 14.13 | % |  |  | 13.73 | % |  |  | 13.17 | % |  |  | 12.67 | % |  |  | 13.62 | %

(1) |  | The Company has elected to use the CECL transition provision allowed for in the year of adopting ASC 326.

(2) |  | Calculations of tangible common equity to tangible assets and the reconciliations to GAAP are included in the schedules accompanying this release.

Page 3

Simmons First National Corporation |  |  |  |  |  |  |  | SFNC
Consolidated Investment Securities |  |  |  |  |  |  |  |  |  |
For the Quarters Ended |  | Mar 31 |  | Dec 31 |  | Sep 30 |  | Jun 30 |  | Mar 31
(Unaudited) |  | 2020 |  | 2019 |  | 2019 |  | 2019 |  | 2019
($ in thousands) |  |  |  |  |  |  |  |  |  |
Investment Securities - End of Period |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Held-to-Maturity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government agencies |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 999 |  |  | $ | 12,996 |
Mortgage-backed securities |  |  | 27,121 |  |  |  | 10,796 |  |  |  | 11,549 |  |  |  | 12,225 |  |  |  | 12,847 |
State and political subdivisions |  |  | 26,082 |  |  |  | 27,082 |  |  |  | 28,692 |  |  |  | 32,236 |  |  |  | 33,597 |
Other securities |  |  | 765 |  |  |  | 3,049 |  |  |  | 1,996 |  |  |  | 1,995 |  |  |  | 1,995 |
Total held-to-maturity (net of credit losses) |  |  | 53,968 |  |  |  | 40,927 |  |  |  | 42,237 |  |  |  | 47,455 |  |  |  | 61,435 |
Available-for-Sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government agencies |  | $ | 161,289 |  |  | $ | 194,249 |  |  | $ | 178,139 |  |  | $ | 197,656 |  |  | $ | 161,577 |
Mortgage-backed securities |  |  | 1,179,837 |  |  |  | 1,742,945 |  |  |  | 1,337,794 |  |  |  | 1,345,760 |  |  |  | 1,345,677 |
State and political subdivisions |  |  | 678,338 |  |  |  | 880,524 |  |  |  | 681,202 |  |  |  | 636,558 |  |  |  | 580,790 |
Other securities |  |  | 22,187 |  |  |  | 20,896 |  |  |  | 13,796 |  |  |  | 11,599 |  |  |  | 4,593 |
Total available-for-sale (net of credit losses) |  |  | 2,466,640 |  |  |  | 3,288,343 |  |  |  | 2,210,931 |  |  |  | 2,191,573 |  |  |  | 2,092,637 |
Total investment securities (net of credit losses) |  | $ | 2,520,608 |  |  | $ | 3,329,270 |  |  | $ | 2,253,168 |  |  | $ | 2,239,028 |  |  | $ | 2,154,072 |
Fair value - HTM investment securities |  | $ | 56,123 |  |  | $ | 41,855 |  |  | $ | 43,302 |  |  | $ | 48,640 |  |  | $ | 61,956 |
Investment Securities - QTD Average |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Taxable securities |  | $ | 2,324,188 |  |  | $ | 1,940,755 |  |  | $ | 1,561,308 |  |  | $ | 1,641,986 |  |  | $ | 1,725,568 |
Tax exempt securities |  |  | 900,223 |  |  |  | 825,000 |  |  |  | 681,505 |  |  |  | 624,898 |  |  |  | 590,941 |
Total investment securities - QTD average |  | $ | 3,224,411 |  |  | $ | 2,765,755 |  |  | $ | 2,242,813 |  |  | $ | 2,266,884 |  |  | $ | 2,316,509 |

Page 4

Simmons First National Corporation |  |  |  |  |  |  |  | SFNC
Consolidated Allowance and Asset Quality |  |  |  |  |  |  |  |  |  |
For the Quarters Ended |  | Mar 31 |  | Dec 31 |  | Sep 30 |  | Jun 30 |  | Mar 31
(Unaudited) |  | 2020 |  | 2019 |  | 2019 |  | 2019 |  | 2019
($ in thousands) |  |  |  |  |  |  |  |  |  |
Allowance for Credit Losses on Loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance, prior to adoption of ASC 326 |  | $ | 68,244 |  |  | $ | 66,590 |  |  | $ | 64,179 |  |  | $ | 60,555 |  |  | $ | 56,694 |
Impact of adopting ASC 326 (1) |  | $ | 151,377 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance, after adoption of ASC 326 |  | $ | 219,621 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans charged off |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Credit cards |  |  | 1,441 |  |  |  | 1,287 |  |  |  | 1,117 |  |  |  | 1,039 |  |  |  | 1,142 |
Other consumer |  |  | 1,379 |  |  |  | 1,425 |  |  |  | 1,065 |  |  |  | 964 |  |  |  | 1,553 |
Real estate |  |  | 396 |  |  |  | 892 |  |  |  | 1,367 |  |  |  | 1,216 |  |  |  | 417 |
Commercial |  |  | 523 |  |  |  | 459 |  |  |  | 17,778 |  |  |  | 1,963 |  |  |  | 3,152 |
Total loans charged off |  |  | 3,739 |  |  |  | 4,063 |  |  |  | 21,327 |  |  |  | 5,182 |  |  |  | 6,264 |
Recoveries of loans previously charged off |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Credit cards |  |  | 225 |  |  |  | 287 |  |  |  | 223 |  |  |  | 271 |  |  |  | 240 |
Other consumer |  |  | 443 |  |  |  | 304 |  |  |  | 1,422 |  |  |  | 331 |  |  |  | 300 |
Real estate |  |  | 101 |  |  |  | 146 |  |  |  | 55 |  |  |  | 158 |  |  |  | 142 |
Commercial |  |  | 347 |  |  |  | 77 |  |  |  | 65 |  |  |  | 967 |  |  |  | 158 |
Total recoveries |  |  | 1,116 |  |  |  | 814 |  |  |  | 1,765 |  |  |  | 1,727 |  |  |  | 840 |
Net loans charged off |  |  | 2,623 |  |  |  | 3,249 |  |  |  | 19,562 |  |  |  | 3,455 |  |  |  | 5,424 |
Provision for credit losses on loans |  |  | 26,197 |  |  |  | 4,903 |  |  |  | 21,973 |  |  |  | 7,079 |  |  |  | 9,285 |
Balance, end of quarter |  | $ | 243,195 |  |  | $ | 68,244 |  |  | $ | 66,590 |  |  | $ | 64,179 |  |  | $ | 60,555 |
Non-performing assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-performing loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Nonaccrual loans |  | $ | 156,746 |  |  | $ | 91,723 |  |  | $ | 84,660 |  |  | $ | 106,670 |  |  | $ | 95,286 |
Loans past due 90 days or more |  |  | 1,305 |  |  |  | 855 |  |  |  | 177 |  |  |  | 277 |  |  |  | 305 |
Total non-performing loans |  |  | 158,051 |  |  |  | 92,578 |  |  |  | 84,837 |  |  |  | 106,947 |  |  |  | 95,591 |
Other non-performing assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreclosed assets and other real estate owned |  |  | 20,805 |  |  |  | 19,121 |  |  |  | 19,576 |  |  |  | 24,761 |  |  |  | 18,952 |
Other non-performing assets |  |  | 2,169 |  |  |  | 1,964 |  |  |  | 540 |  |  |  | 613 |  |  |  | 505 |
Total other non-performing assets |  |  | 22,974 |  |  |  | 21,085 |  |  |  | 20,116 |  |  |  | 25,374 |  |  |  | 19,457 |
Total non-performing assets |  | $ | 181,025 |  |  | $ | 113,663 |  |  | $ | 104,953 |  |  | $ | 132,321 |  |  | $ | 115,048 |
Performing TDRs (troubled debt restructurings) |  | $ | 4,110 |  |  | $ | 4,411 |  |  | $ | 6,519 |  |  | $ | 6,246 |  |  | $ | 6,297 |
Ratios |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for credit losses to total loans |  |  | 1.69 | % |  |  | 0.47 | % |  |  | 0.51 | % |  |  | 0.49 | % |  |  | 0.52 | %
Allowance for credit losses to non-performing loans |  |  | 154 | % |  |  | 74 | % |  |  | 78 | % |  |  | 60 | % |  |  | 63 | %
Non-performing loans to total loans |  |  | 1.10 | % |  |  | 0.64 | % |  |  | 0.65 | % |  |  | 0.81 | % |  |  | 0.81 | %
Non-performing assets (including performing TDRs) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
to total assets |  |  | 0.89 | % |  |  | 0.56 | % |  |  | 0.63 | % |  |  | 0.77 | % |  |  | 0.75 | %
Non-performing assets to total assets |  |  | 0.87 | % |  |  | 0.53 | % |  |  | 0.59 | % |  |  | 0.74 | % |  |  | 0.71 | %
Annualized net charge offs to total loans |  |  | 0.07 | % |  |  | 0.09 | % |  |  | 0.59 | % |  |  | 0.11 | % |  |  | 0.19 | %
Annualized net credit card charge offs to |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
total credit card loans |  |  | 2.26 | % |  |  | 1.99 | % |  |  | 1.82 | % |  |  | 1.63 | % |  |  | 1.92 | %

(1) |  | The Company adopted ASC 326.effective January 1, 2020.

Page 5

Simmons First National Corporation |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | SFNC
Consolidated - Average Balance Sheet and Net Interest Income Analysis |  |  |  |  |  |  |  |  |  |  |  |
For the Quarters Ended |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(Unaudited) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Three Months Ended Mar 2020 |  | Three Months Ended Dec 2019 |  | Three Months Ended Mar 2019
($ in thousands) |  | Average Balance |  | Income/ Expense |  | Yield/ Rate |  | Average Balance |  | Income/ Expense |  | Yield/ Rate |  | Average Balance |  | Income/ Expense |  | Yield/ Rate
ASSETS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Earning assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest bearing balances due from banks |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
and federal funds sold |  | $ | 764,639 |  |  | $ | 2,441 |  |  |  | 1.28 | % |  | $ | 789,035 |  |  | $ | 2,625 |  |  |  | 1.32 | % |  | $ | 394,462 |  |  | $ | 2,154 |  |  |  | 2.21 | %
Investment securities - taxable |  |  | 2,324,188 |  |  |  | 12,752 |  |  |  | 2.21 | % |  |  | 1,940,755 |  |  |  | 11,080 |  |  |  | 2.27 | % |  |  | 1,725,568 |  |  |  | 11,958 |  |  |  | 2.81 | %
Investment securities - non-taxable (FTE) |  |  | 900,223 |  |  |  | 8,315 |  |  |  | 3.71 | % |  |  | 825,000 |  |  |  | 7,945 |  |  |  | 3.82 | % |  |  | 590,941 |  |  |  | 5,834 |  |  |  | 4.00 | %
Mortgage loans held for sale |  |  | 43,588 |  |  |  | 281 |  |  |  | 2.59 | % |  |  | 53,511 |  |  |  | 402 |  |  |  | 2.98 | % |  |  | 17,733 |  |  |  | 210 |  |  |  | 4.80 | %
Loans (FTE) |  |  | 14,548,853 |  |  |  | 187,747 |  |  |  | 5.19 | % |  |  | 14,144,259 |  |  |  | 193,511 |  |  |  | 5.43 | % |  |  | 11,710,075 |  |  |  | 159,530 |  |  |  | 5.53 | %
Total interest earning assets (FTE) |  |  | 18,581,491 |  |  |  | 211,536 |  |  |  | 4.58 | % |  |  | 17,752,560 |  |  |  | 215,563 |  |  |  | 4.82 | % |  |  | 14,438,779 |  |  |  | 179,686 |  |  |  | 5.05 | %
Non-earning assets |  |  | 2,338,732 |  |  |  |  |  |  |  |  |  |  |  | 2,289,330 |  |  |  |  |  |  |  |  |  |  |  | 1,863,418 |  |  |  |  |  |  |  |  |
Total assets |  | $ | 20,920,223 |  |  |  |  |  |  |  |  |  |  | $ | 20,041,890 |  |  |  |  |  |  |  |  |  |  | $ | 16,302,197 |  |  |  |  |  |  |  |  |
LIABILITIES AND STOCKHOLDERS' EQUITY |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest bearing liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest bearing transaction and |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
savings accounts |  | $ | 9,005,701 |  |  | $ | 17,954 |  |  |  | 0.80 | % |  | $ | 8,440,090 |  |  | $ | 20,331 |  |  |  | 0.96 | % |  | $ | 6,749,032 |  |  | $ | 18,430 |  |  |  | 1.11 | %
Time deposits |  |  | 3,150,909 |  |  |  | 13,323 |  |  |  | 1.70 | % |  |  | 3,393,089 |  |  |  | 16,198 |  |  |  | 1.89 | % |  |  | 2,781,592 |  |  |  | 12,320 |  |  |  | 1.80 | %
Total interest bearing deposits |  |  | 12,156,610 |  |  |  | 31,277 |  |  |  | 1.03 | % |  |  | 11,833,179 |  |  |  | 36,529 |  |  |  | 1.22 | % |  |  | 9,530,624 |  |  |  | 30,750 |  |  |  | 1.31 | %
Federal funds purchased and securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
sold under agreement to repurchase |  |  | 330,902 |  |  |  | 759 |  |  |  | 0.92 | % |  |  | 147,395 |  |  |  | 368 |  |  |  | 0.99 | % |  |  | 109,302 |  |  |  | 136 |  |  |  | 0.50 | %
Other borrowings |  |  | 1,320,245 |  |  |  | 4,877 |  |  |  | 1.49 | % |  |  | 1,168,897 |  |  |  | 4,615 |  |  |  | 1.57 | % |  |  | 1,224,255 |  |  |  | 6,793 |  |  |  | 2.25 | %
Subordinated notes and debentures |  |  | 388,330 |  |  |  | 4,835 |  |  |  | 5.01 | % |  |  | 376,766 |  |  |  | 4,813 |  |  |  | 5.07 | % |  |  | 353,996 |  |  |  | 4,411 |  |  |  | 5.05 | %
Total interest bearing liabilities |  |  | 14,196,087 |  |  |  | 41,748 |  |  |  | 1.18 | % |  |  | 13,526,237 |  |  |  | 46,325 |  |  |  | 1.36 | % |  |  | 11,218,177 |  |  |  | 42,090 |  |  |  | 1.52 | %
Non-interest bearing liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-interest bearing deposits |  |  | 3,602,678 |  |  |  |  |  |  |  |  |  |  |  | 3,524,092 |  |  |  |  |  |  |  |  |  |  |  | 2,707,715 |  |  |  |  |  |  |  |  |
Other liabilities |  |  | 251,514 |  |  |  |  |  |  |  |  |  |  |  | 379,909 |  |  |  |  |  |  |  |  |  |  |  | 127,407 |  |  |  |  |  |  |  |  |
Total liabilities |  |  | 18,050,279 |  |  |  |  |  |  |  |  |  |  |  | 17,430,238 |  |  |  |  |  |  |  |  |  |  |  | 14,053,299 |  |  |  |  |  |  |  |  |
Stockholders' equity |  |  | 2,869,944 |  |  |  |  |  |  |  |  |  |  |  | 2,611,652 |  |  |  |  |  |  |  |  |  |  |  | 2,248,898 |  |  |  |  |  |  |  |  |
Total liabilities and stockholders' equity |  | $ | 20,920,223 |  |  |  |  |  |  |  |  |  |  | $ | 20,041,890 |  |  |  |  |  |  |  |  |  |  | $ | 16,302,197 |  |  |  |  |  |  |  |  |
Net interest income (FTE) |  |  |  |  |  | $ | 169,788 |  |  |  |  |  |  |  |  |  |  | $ | 169,238 |  |  |  |  |  |  |  |  |  |  | $ | 137,596 |  |  |  |  |
Net interest spread (FTE) |  |  |  |  |  |  |  |  |  |  | 3.40 | % |  |  |  |  |  |  |  |  |  |  | 3.46 | % |  |  |  |  |  |  |  |  |  |  | 3.53 | %
Net interest margin (FTE) - quarter-to-date |  |  |  |  |  |  |  |  |  |  | 3.68 | % |  |  |  |  |  |  |  |  |  |  | 3.78 | % |  |  |  |  |  |  |  |  |  |  | 3.86 | %
Net interest margin (FTE) - year-to-date |  |  |  |  |  |  |  |  |  |  | 3.68 | % |  |  |  |  |  |  |  |  |  |  | 3.85 | % |  |  |  |  |  |  |  |  |  |  | 3.86 | %
Core net interest margin (FTE) - quarter-to-date (1) |  |  |  |  |  |  |  |  |  |  | 3.42 | % |  |  |  |  |  |  |  |  |  |  | 3.44 | % |  |  |  |  |  |  |  |  |  |  | 3.68 | %
Core loan yield (FTE) - quarter-to-date (1) |  |  |  |  |  |  |  |  |  |  | 4.86 | % |  |  |  |  |  |  |  |  |  |  | 5.00 | % |  |  |  |  |  |  |  |  |  |  | 5.29 | %
Core net interest margin (FTE) - year-to-date (1) |  |  |  |  |  |  |  |  |  |  | 3.42 | % |  |  |  |  |  |  |  |  |  |  | 3.59 | % |  |  |  |  |  |  |  |  |  |  | 3.68 | %
Core loan yield (FTE) - year-to-date (1) |  |  |  |  |  |  |  |  |  |  | 4.86 | % |  |  |  |  |  |  |  |  |  |  | 5.18 | % |  |  |  |  |  |  |  |  |  |  | 5.29 | %

(1) |  | Calculations of core net interest margin and core loan yield and the reconciliations to GAAP are included in the schedules accompanying this release.

Page 6

Simmons First National Corporation |  |  |  |  |  |  |  | SFNC
Consolidated - Selected Financial Data |  |  |  |  |  |  |  |  |  |
For the Quarters Ended |  | Mar 31 |  | Dec 31 |  | Sep 30 |  | Jun 30 |  | Mar 31
(Unaudited) |  | 2020 |  | 2019 |  | 2019 |  | 2019 |  | 2019
($ in thousands, except share data) |  |  |  |  |  |  |  |  |  |
QUARTER-TO-DATE |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Financial Highlights - GAAP |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net Income |  | $ | 77,223 |  |  | $ | 52,709 |  |  | $ | 81,826 |  |  | $ | 55,598 |  |  | $ | 47,695 |
Diluted earnings per share |  |  | 0.68 |  |  |  | 0.49 |  |  |  | 0.84 |  |  |  | 0.58 |  |  |  | 0.51 |
Return on average assets |  |  | 1.48 | % |  |  | 1.04 | % |  |  | 1.83 | % |  |  | 1.28 | % |  |  | 1.19 | %
Return on average common equity |  |  | 10.83 | % |  |  | 8.01 | % |  |  | 13.70 | % |  |  | 9.48 | % |  |  | 8.60 | %
Return on tangible common equity |  |  | 19.00 | % |  |  | 14.62 | % |  |  | 24.89 | % |  |  | 17.40 | % |  |  | 15.34 | %
Net interest margin (FTE) |  |  | 3.68 | % |  |  | 3.78 | % |  |  | 3.82 | % |  |  | 3.94 | % |  |  | 3.86 | %
FTE adjustment |  |  | 2,305 |  |  |  | 2,172 |  |  |  | 1,843 |  |  |  | 1,706 |  |  |  | 1,601 |
Amortization of intangibles |  |  | 3,413 |  |  |  | 3,270 |  |  |  | 2,947 |  |  |  | 2,947 |  |  |  | 2,641 |
Amortization of intangibles, net of taxes |  |  | 2,521 |  |  |  | 2,416 |  |  |  | 2,176 |  |  |  | 2,177 |  |  |  | 1,951 |
Average diluted shares outstanding |  |  | 113,136,995 |  |  |  | 108,472,559 |  |  |  | 96,968,775 |  |  |  | 96,367,857 |  |  |  | 92,870,813 |
Shares repurchased under plan |  |  | 4,922,336 |  |  |  | 390,000 |  |  |  | - |  |  |  | - |  |  |  | - |
Average price of shares repurchased |  |  | 18.95 |  |  |  | 25.95 |  |  |  | - |  |  |  | - |  |  |  | - |
Cash dividends declared per common share |  |  | 0.17 |  |  |  | 0.16 |  |  |  | 0.16 |  |  |  | 0.16 |  |  |  | 0.16 |
Financial Highlights - Core (non-GAAP) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Core earnings (excludes non-core items) (1) |  | $ | 73,838 |  |  | $ | 71,074 |  |  | $ | 83,963 |  |  | $ | 65,453 |  |  | $ | 49,076 |
Core diluted earnings per share (1) |  |  | 0.65 |  |  |  | 0.66 |  |  |  | 0.87 |  |  |  | 0.68 |  |  |  | 0.53 |
Core net interest margin (FTE) (2) |  |  | 3.42 | % |  |  | 3.44 | % |  |  | 3.59 | % |  |  | 3.67 | % |  |  | 3.68 | %
Accretable yield on acquired loans |  |  | 11,837 |  |  |  | 15,100 |  |  |  | 9,322 |  |  |  | 10,162 |  |  |  | 6,660 |
Efficiency ratio (1) |  |  | 56.38 | % |  |  | 52.63 | % |  |  | 43.77 | % |  |  | 49.88 | % |  |  | 56.76 | %
Core return on average assets (1) |  |  | 1.42 | % |  |  | 1.41 | % |  |  | 1.88 | % |  |  | 1.51 | % |  |  | 1.22 | %
Core return on average common equity (1) |  |  | 10.35 | % |  |  | 10.80 | % |  |  | 14.06 | % |  |  | 11.16 | % |  |  | 8.85 | %
Core return on tangible common equity (1) |  |  | 18.19 | % |  |  | 19.49 | % |  |  | 25.52 | % |  |  | 20.36 | % |  |  | 15.76 | %
YEAR-TO-DATE |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Financial Highlights - GAAP |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net Income |  | $ | 77,223 |  |  | $ | 237,828 |  |  | $ | 185,119 |  |  | $ | 103,293 |  |  | $ | 47,695 |
Diluted earnings per share |  |  | 0.68 |  |  |  | 2.41 |  |  |  | 1.94 |  |  |  | 1.09 |  |  |  | 0.51 |
Return on average assets |  |  | 1.48 | % |  |  | 1.33 | % |  |  | 1.44 | % |  |  | 1.24 | % |  |  | 1.19 | %
Return on average common equity |  |  | 10.83 | % |  |  | 9.93 | % |  |  | 10.65 | % |  |  | 9.05 | % |  |  | 8.60 | %
Return on tangible common equity |  |  | 19.00 | % |  |  | 17.99 | % |  |  | 19.27 | % |  |  | 16.38 | % |  |  | 15.34 | %
Net interest margin (FTE) |  |  | 3.68 | % |  |  | 3.85 | % |  |  | 3.88 | % |  |  | 3.90 | % |  |  | 3.86 | %
FTE adjustment |  |  | 2,305 |  |  |  | 7,322 |  |  |  | 5,150 |  |  |  | 3,307 |  |  |  | 1,601 |
Amortization of intangibles |  |  | 3,413 |  |  |  | 11,805 |  |  |  | 8,535 |  |  |  | 5,588 |  |  |  | 2,641 |
Amortization of intangibles, net of taxes |  |  | 2,521 |  |  |  | 8,720 |  |  |  | 6,304 |  |  |  | 4,128 |  |  |  | 1,951 |
Average diluted shares outstanding |  |  | 113,136,995 |  |  |  | 98,796,628 |  |  |  | 95,450,732 |  |  |  | 94,588,739 |  |  |  | 92,870,813 |
Cash dividends declared per common share |  |  | 0.17 |  |  |  | 0.64 |  |  |  | 0.48 |  |  |  | 0.32 |  |  |  | 0.16 |
Financial Highlights - Core (non-GAAP) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Core earnings (excludes non-core items) (1) |  | $ | 73,838 |  |  | $ | 269,566 |  |  | $ | 198,492 |  |  | $ | 114,529 |  |  | $ | 49,076 |
Core diluted earnings per share (1) |  |  | 0.65 |  |  |  | 2.73 |  |  |  | 2.08 |  |  |  | 1.21 |  |  |  | 0.53 |
Core net interest margin (FTE) (2) |  |  | 3.42 | % |  |  | 3.59 | % |  |  | 3.64 | % |  |  | 3.68 | % |  |  | 3.68 | %
Accretable yield on acquired loans |  |  | 11,837 |  |  |  | 41,244 |  |  |  | 26,144 |  |  |  | 16,822 |  |  |  | 6,660 |
Efficiency ratio (1) |  |  | 56.38 | % |  |  | 50.33 | % |  |  | 49.49 | % |  |  | 53.14 | % |  |  | 56.76 | %
Core return on average assets (1) |  |  | 1.42 | % |  |  | 1.51 | % |  |  | 1.55 | % |  |  | 1.37 | % |  |  | 1.22 | %
Core return on average common equity (1) |  |  | 10.35 | % |  |  | 11.25 | % |  |  | 11.42 | % |  |  | 10.04 | % |  |  | 8.85 | %
Core return on tangible common equity (1) |  |  | 18.19 | % |  |  | 20.31 | % |  |  | 20.62 | % |  |  | 18.09 | % |  |  | 15.76 | %
END OF PERIOD |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Book value per share |  | $ | 26.11 |  |  | $ | 26.30 |  |  | $ | 26.36 |  |  | $ | 25.57 |  |  | $ | 24.87 |
Tangible book value per share |  |  | 15.22 |  |  |  | 15.89 |  |  |  | 15.73 |  |  |  | 14.90 |  |  |  | 14.78 |
Shares outstanding |  |  | 108,947,520 |  |  |  | 113,628,601 |  |  |  | 96,613,855 |  |  |  | 96,590,656 |  |  |  | 92,568,361 |
Full-time equivalent employees |  |  | 3,079 |  |  |  | 3,270 |  |  |  | 2,701 |  |  |  | 2,700 |  |  |  | 2,602 |
Total number of financial centers |  |  | 240 |  |  |  | 251 |  |  |  | 212 |  |  |  | 212 |  |  |  | 191 |

(1) |  | Core earnings exclude non-core items, which is a non-GAAP measurement. Reconciliations to GAAP are included in the schedules accompanying this release.

(2) |  | Excludes accretable yield adjustment on loans, which is a non-GAAP measurement. Reconciliations to GAAP are included in the schedules accompanying this release.

Page 7

Simmons First National Corporation |  |  |  |  |  |  |  | SFNC
Consolidated - Reconciliation of Core Earnings (non-GAAP) |  |  |  |  |  |
For the Quarters Ended |  | Mar 31 |  | Dec 31 |  | Sep 30 |  | Jun 30 |  | Mar 31
(Unaudited) |  | 2020 |  | 2019 |  | 2019 |  | 2019 |  | 2019
($ in thousands, except per share data) |  |  |  |  |  |  |  |  |  |
QUARTER-TO-DATE |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net Income |  | $ | 77,223 |  |  | $ | 52,709 |  |  | $ | 81,826 |  |  | $ | 55,598 |  |  | $ | 47,695 |
Non-core items |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gain on sale of branches |  |  | (5,889 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Merger-related costs |  |  | 1,068 |  |  |  | 24,831 |  |  |  | 2,556 |  |  |  | 7,522 |  |  |  | 1,470 |
Early retirement program |  |  | - |  |  |  | - |  |  |  | 177 |  |  |  | 2,932 |  |  |  | 355 |
Branch right-sizing |  |  | 238 |  |  |  | 37 |  |  |  | 160 |  |  |  | 2,887 |  |  |  | 45 |
Tax effect (1) |  |  | 1,198 |  |  |  | (6,503 | ) |  |  | (756 | ) |  |  | (3,486 | ) |  |  | (489 | )
Net non-core items |  |  | (3,385 | ) |  |  | 18,365 |  |  |  | 2,137 |  |  |  | 9,855 |  |  |  | 1,381 |
Core earnings (non-GAAP) |  | $ | 73,838 |  |  | $ | 71,074 |  |  | $ | 83,963 |  |  | $ | 65,453 |  |  | $ | 49,076 |
Diluted earnings per share |  | $ | 0.68 |  |  | $ | 0.49 |  |  | $ | 0.84 |  |  | $ | 0.58 |  |  | $ | 0.51 |
Non-core items |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gain on sale of branches |  |  | (0.05 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Merger-related costs |  |  | 0.01 |  |  |  | 0.23 |  |  |  | 0.04 |  |  |  | 0.08 |  |  |  | 0.02 |
Early retirement program |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 0.03 |  |  |  | 0.01 |
Branch right-sizing |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 0.03 |  |  |  | - |
Tax effect (1) |  |  | 0.01 |  |  |  | (0.06 | ) |  |  | (0.01 | ) |  |  | (0.04 | ) |  |  | (0.01 | )
Net non-core items |  |  | (0.03 | ) |  |  | 0.17 |  |  |  | 0.03 |  |  |  | 0.10 |  |  |  | 0.02 |
Core diluted earnings per share (non-GAAP) |  | $ | 0.65 |  |  | $ | 0.66 |  |  | $ | 0.87 |  |  | $ | 0.68 |  |  | $ | 0.53 |
YEAR-TO-DATE |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net Income |  | $ | 77,223 |  |  | $ | 237,828 |  |  | $ | 185,119 |  |  | $ | 103,293 |  |  | $ | 47,695 |
Non-core items |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gain on sale of branches |  |  | (5,889 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Merger-related costs |  |  | 1,068 |  |  |  | 36,379 |  |  |  | 11,548 |  |  |  | 8,992 |  |  |  | 1,470 |
Early retirement program |  |  | - |  |  |  | 3,464 |  |  |  | 3,464 |  |  |  | 3,287 |  |  |  | 355 |
Branch right-sizing |  |  | 238 |  |  |  | 3,129 |  |  |  | 3,092 |  |  |  | 2,932 |  |  |  | 45 |
Tax effect (1) |  |  | 1,198 |  |  |  | (11,234 | ) |  |  | (4,731 | ) |  |  | (3,975 | ) |  |  | (489 | )
Net non-core items |  |  | (3,385 | ) |  |  | 31,738 |  |  |  | 13,373 |  |  |  | 11,236 |  |  |  | 1,381 |
Core earnings (non-GAAP) |  | $ | 73,838 |  |  | $ | 269,566 |  |  | $ | 198,492 |  |  | $ | 114,529 |  |  | $ | 49,076 |
Diluted earnings per share |  | $ | 0.68 |  |  | $ | 2.41 |  |  | $ | 1.94 |  |  | $ | 1.09 |  |  | $ | 0.51 |
Non-core items |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gain on sale of branches |  |  | (0.05 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Merger-related costs |  |  | 0.01 |  |  |  | 0.37 |  |  |  | 0.12 |  |  |  | 0.10 |  |  |  | 0.02 |
Early retirement program |  |  | - |  |  |  | 0.03 |  |  |  | 0.04 |  |  |  | 0.03 |  |  |  | 0.01 |
Branch right-sizing |  |  | - |  |  |  | 0.03 |  |  |  | 0.03 |  |  |  | 0.03 |  |  |  | - |
Tax effect (1) |  |  | 0.01 |  |  |  | (0.11 | ) |  |  | (0.05 | ) |  |  | (0.04 | ) |  |  | (0.01 | )
Net non-core items |  |  | (0.03 | ) |  |  | 0.32 |  |  |  | 0.14 |  |  |  | 0.12 |  |  |  | 0.02 |
Core diluted earnings per share (non-GAAP) |  | $ | 0.65 |  |  | $ | 2.73 |  |  | $ | 2.08 |  |  | $ | 1.21 |  |  | $ | 0.53 |

(1) |  | Effective tax rate of 26.135%.

Reconciliation of Selected Non-Core Non-Interest Expense Items (non-GAAP) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
QUARTER-TO-DATE |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Salaries and employee benefits |  | $ | 67,924 |  |  | $ | 63,235 |  |  | $ | 52,065 |  |  | $ | 56,128 |  |  | $ | 56,367 |
Non-core items (1) |  |  | - |  |  |  | - |  |  |  | (176 | ) |  |  | (2,937 | ) |  |  | (351 | )
Core salaries and employee benefits (non-GAAP) |  | $ | 67,924 |  |  | $ | 63,235 |  |  | $ | 51,889 |  |  | $ | 53,191 |  |  | $ | 56,016 |
Merger related costs |  | $ | 1,068 |  |  | $ | 24,831 |  |  | $ | 2,556 |  |  | $ | 7,522 |  |  | $ | 1,470 |
Non-core items (1) |  |  | (1,068 | ) |  |  | (24,831 | ) |  |  | (2,556 | ) |  |  | (7,522 | ) |  |  | (1,470 | )
Core merger related costs (non-GAAP) |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |
Other operating expenses |  | $ | 38,788 |  |  | $ | 38,044 |  |  | $ | 37,881 |  |  | $ | 32,867 |  |  | $ | 30,062 |
Non-core items (1) |  |  | (212 | ) |  |  | (4 | ) |  |  | (90 | ) |  |  | (2,834 | ) |  |  | (10 | )
Core other operating expenses (non-GAAP) |  | $ | 38,576 |  |  | $ | 38,040 |  |  | $ | 37,791 |  |  | $ | 30,033 |  |  | $ | 30,052 |

(1) |  | Non-core expense items include merger related costs, early retirement program expenses and branch right sizing costs.

Page 8

Simmons First National Corporation |  |  |  |  |  |  |  |  |  | SFNC
Reconciliation Of Non-GAAP Financial Measures - End of Period |  |  |  |  |  |
For the Quarters Ended |  |  |  |  |  |  |  |  |  |
(Unaudited) |  | Mar 31 |  | Dec 31 |  | Sept 30 |  | Jun 30 |  | Mar 31
|  | 2020 |  | 2019 |  | 2019 |  | 2019 |  | 2019
($ in thousands, except per share data) |  |  |  |  |  |  |  |  |  |
Calculation of Tangible Common Equity and the Ratio of Tangible Common Equity to Tangible Assets
Total common stockholders' equity |  | $ | 2,844,633 |  |  | $ | 2,988,157 |  |  | $ | 2,547,071 |  |  | $ | 2,469,513 |  |  | $ | 2,302,321 |
Intangible assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  |  | (1,064,978 | ) |  |  | (1,055,520 | ) |  |  | (926,648 | ) |  |  | (926,450 | ) |  |  | (845,687 | )
Other intangible assets |  |  | (121,673 | ) |  |  | (127,340 | ) |  |  | (101,149 | ) |  |  | (104,096 | ) |  |  | (88,694 | )
Total intangibles |  |  | (1,186,651 | ) |  |  | (1,182,860 | ) |  |  | (1,027,797 | ) |  |  | (1,030,546 | ) |  |  | (934,381 | )
Tangible common stockholders' equity |  | $ | 1,657,982 |  |  | $ | 1,805,297 |  |  | $ | 1,519,274 |  |  | $ | 1,438,967 |  |  | $ | 1,367,940 |
Total assets |  | $ | 20,841,352 |  |  | $ | 21,259,143 |  |  | $ | 17,758,511 |  |  | $ | 17,937,435 |  |  | $ | 16,091,639 |
Intangible assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  |  | (1,064,978 | ) |  |  | (1,055,520 | ) |  |  | (926,648 | ) |  |  | (926,450 | ) |  |  | (845,687 | )
Other intangible assets |  |  | (121,673 | ) |  |  | (127,340 | ) |  |  | (101,149 | ) |  |  | (104,096 | ) |  |  | (88,694 | )
Total intangibles |  |  | (1,186,651 | ) |  |  | (1,182,860 | ) |  |  | (1,027,797 | ) |  |  | (1,030,546 | ) |  |  | (934,381 | )
Tangible assets |  | $ | 19,654,701 |  |  | $ | 20,076,283 |  |  | $ | 16,730,714 |  |  | $ | 16,906,889 |  |  | $ | 15,157,258 |
Ratio of equity to assets |  |  | 13.65 | % |  |  | 14.06 | % |  |  | 14.34 | % |  |  | 13.77 | % |  |  | 14.31 | %
Ratio of tangible common equity to tangible assets |  |  | 8.44 | % |  |  | 8.99 | % |  |  | 9.08 | % |  |  | 8.51 | % |  |  | 9.02 | %
Calculation of Tangible Book Value per Share |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total common stockholders' equity |  | $ | 2,844,633 |  |  | $ | 2,988,157 |  |  | $ | 2,547,071 |  |  | $ | 2,469,513 |  |  | $ | 2,302,321 |
Intangible assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  |  | (1,064,978 | ) |  |  | (1,055,520 | ) |  |  | (926,648 | ) |  |  | (926,450 | ) |  |  | (845,687 | )
Other intangible assets |  |  | (121,673 | ) |  |  | (127,340 | ) |  |  | (101,149 | ) |  |  | (104,096 | ) |  |  | (88,694 | )
Total intangibles |  |  | (1,186,651 | ) |  |  | (1,182,860 | ) |  |  | (1,027,797 | ) |  |  | (1,030,546 | ) |  |  | (934,381 | )
Tangible common stockholders' equity |  | $ | 1,657,982 |  |  | $ | 1,805,297 |  |  | $ | 1,519,274 |  |  | $ | 1,438,967 |  |  | $ | 1,367,940 |
Shares of common stock outstanding |  |  | 108,947,520 |  |  |  | 113,628,601 |  |  |  | 96,613,855 |  |  |  | 96,590,656 |  |  |  | 92,568,361 |
Book value per common share |  | $ | 26.11 |  |  | $ | 26.30 |  |  | $ | 26.36 |  |  | $ | 25.57 |  |  | $ | 24.87 |
Tangible book value per common share |  | $ | 15.22 |  |  | $ | 15.89 |  |  | $ | 15.73 |  |  | $ | 14.90 |  |  | $ | 14.78 |

Page 9

Simmons First National Corporation |  |  |  |  |  |  |  |  |  | SFNC
Reconciliation Of Non-GAAP Financial Measures - Quarter-to-Date |  |  |  |  |  |
For the Quarters Ended |  |  |  |  |  |  |  |  |  |
(Unaudited) |  | Mar 31 |  | Dec 31 |  | Sept 30 |  | Jun 30 |  | Mar 31
|  | 2020 |  | 2019 |  | 2019 |  | 2019 |  | 2019
($ in thousands) |  |  |  |  |  |  |  |  |  |
Calculation of Core Return on Average Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income |  | $ | 77,223 |  |  | $ | 52,709 |  |  | $ | 81,826 |  |  | $ | 55,598 |  |  | $ | 47,695 |
Net non-core items, net of taxes, adjustment |  |  | (3,385 | ) |  |  | 18,365 |  |  |  | 2,137 |  |  |  | 9,855 |  |  |  | 1,381 |
Core earnings |  | $ | 73,838 |  |  | $ | 71,074 |  |  | $ | 83,963 |  |  | $ | 65,453 |  |  | $ | 49,076 |
Average total assets |  | $ | 20,920,223 |  |  | $ | 20,041,890 |  |  | $ | 17,720,598 |  |  | $ | 17,382,872 |  |  | $ | 16,302,197 |
Return on average assets |  |  | 1.48 | % |  |  | 1.04 | % |  |  | 1.83 | % |  |  | 1.28 | % |  |  | 1.19 | %
Core return on average assets |  |  | 1.42 | % |  |  | 1.41 | % |  |  | 1.88 | % |  |  | 1.51 | % |  |  | 1.22 | %
Calculation of Return on Tangible Common Equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income |  | $ | 77,223 |  |  | $ | 52,709 |  |  | $ | 81,826 |  |  | $ | 55,598 |  |  | $ | 47,695 |
Amortization of intangibles, net of taxes |  |  | 2,521 |  |  |  | 2,416 |  |  |  | 2,176 |  |  |  | 2,177 |  |  |  | 1,951 |
Total income available to common stockholders |  | $ | 79,744 |  |  | $ | 55,125 |  |  | $ | 84,002 |  |  | $ | 57,775 |  |  | $ | 49,646 |
Net non-core items, net of taxes |  |  | (3,385 | ) |  |  | 18,365 |  |  |  | 2,137 |  |  |  | 9,855 |  |  |  | 1,381 |
Core earnings |  |  | 73,838 |  |  |  | 71,074 |  |  |  | 83,963 |  |  |  | 65,453 |  |  |  | 49,076 |
Amortization of intangibles, net of taxes |  |  | 2,521 |  |  |  | 2,416 |  |  |  | 2,176 |  |  |  | 2,177 |  |  |  | 1,951 |
Total core income available to common stockholders |  | $ | 76,359 |  |  | $ | 73,490 |  |  | $ | 86,139 |  |  | $ | 67,630 |  |  | $ | 51,027 |
Average common stockholders' equity |  | $ | 2,869,177 |  |  | $ | 2,611,143 |  |  | $ | 2,368,773 |  |  | $ | 2,351,603 |  |  | $ | 2,248,898 |
Average intangible assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  |  | (1,055,498 | ) |  |  | (997,004 | ) |  |  | (926,687 | ) |  |  | (915,445 | ) |  |  | (845,687 | )
Other intangibles |  |  | (125,746 | ) |  |  | (118,311 | ) |  |  | (103,028 | ) |  |  | (104,050 | ) |  |  | (90,317 | )
Total average intangibles |  |  | (1,181,244 | ) |  |  | (1,115,315 | ) |  |  | (1,029,715 | ) |  |  | (1,019,495 | ) |  |  | (936,004 | )
Average tangible common stockholders' equity |  | $ | 1,687,933 |  |  | $ | 1,495,828 |  |  | $ | 1,339,058 |  |  | $ | 1,332,108 |  |  | $ | 1,312,894 |
Return on average common equity |  |  | 10.83 | % |  |  | 8.01 | % |  |  | 13.70 | % |  |  | 9.48 | % |  |  | 8.60 | %
Return on tangible common equity |  |  | 19.00 | % |  |  | 14.62 | % |  |  | 24.89 | % |  |  | 17.40 | % |  |  | 15.34 | %
Core return on average common equity |  |  | 10.35 | % |  |  | 10.80 | % |  |  | 14.06 | % |  |  | 11.16 | % |  |  | 8.85 | %
Core return on tangible common equity |  |  | 18.19 | % |  |  | 19.49 | % |  |  | 25.52 | % |  |  | 20.36 | % |  |  | 15.76 | %
Calculation of Efficiency Ratio (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-interest expense |  | $ | 125,813 |  |  | $ | 142,095 |  |  | $ | 106,865 |  |  | $ | 110,743 |  |  | $ | 101,409 |
Non-core non-interest expense adjustment |  |  | (1,306 | ) |  |  | (24,868 | ) |  |  | (2,893 | ) |  |  | (13,341 | ) |  |  | (1,870 | )
Other real estate and foreclosure expense adjustment |  |  | (319 | ) |  |  | (1,063 | ) |  |  | (1,057 | ) |  |  | (563 | ) |  |  | (599 | )
Amortization of intangibles adjustment |  |  | (3,413 | ) |  |  | (3,270 | ) |  |  | (2,947 | ) |  |  | (2,947 | ) |  |  | (2,641 | )
Efficiency ratio numerator |  | $ | 120,775 |  |  | $ | 112,894 |  |  | $ | 99,968 |  |  | $ | 93,892 |  |  | $ | 96,299 |
Net-interest income |  | $ | 167,483 |  |  | $ | 167,066 |  |  | $ | 149,264 |  |  | $ | 149,428 |  |  | $ | 135,995 |
Non-interest income |  |  | 82,394 |  |  |  | 45,630 |  |  |  | 84,675 |  |  |  | 39,934 |  |  |  | 34,792 |
Fully tax-equivalent adjustment |  |  | 2,305 |  |  |  | 2,172 |  |  |  | 1,843 |  |  |  | 1,706 |  |  |  | 1,601 |
Gain on sale of securities |  |  | (32,095 | ) |  |  | (377 | ) |  |  | (7,374 | ) |  |  | (2,823 | ) |  |  | (2,740 | )
Efficiency ratio denominator |  | $ | 214,198 |  |  | $ | 214,491 |  |  | $ | 228,408 |  |  | $ | 188,245 |  |  | $ | 169,648 |
Efficiency ratio (1) |  |  | 56.38 | % |  |  | 52.63 | % |  |  | 43.77 | % |  |  | 49.88 | % |  |  | 56.76 | %
Calculation of Core Net Interest Margin |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest income |  | $ | 167,483 |  |  | $ | 167,066 |  |  | $ | 149,264 |  |  | $ | 149,428 |  |  | $ | 135,995 |
Fully tax-equivalent adjustment |  |  | 2,305 |  |  |  | 2,172 |  |  |  | 1,843 |  |  |  | 1,706 |  |  |  | 1,601 |
Fully tax-equivalent net interest income |  |  | 169,788 |  |  |  | 169,238 |  |  |  | 151,107 |  |  |  | 151,134 |  |  |  | 137,596 |
Total accretable yield |  |  | (11,837 | ) |  |  | (15,100 | ) |  |  | (9,322 | ) |  |  | (10,162 | ) |  |  | (6,660 | )
Core net interest income |  | $ | 157,951 |  |  | $ | 154,138 |  |  | $ | 141,785 |  |  | $ | 140,972 |  |  | $ | 130,936 |
Average earning assets |  | $ | 18,581,491 |  |  | $ | 17,753,004 |  |  | $ | 15,680,665 |  |  | $ | 15,389,670 |  |  | $ | 14,440,091 |
Net interest margin |  |  | 3.68 | % |  |  | 3.78 | % |  |  | 3.82 | % |  |  | 3.94 | % |  |  | 3.86 | %
Core net interest margin |  |  | 3.42 | % |  |  | 3.44 | % |  |  | 3.59 | % |  |  | 3.67 | % |  |  | 3.68 | %
Calculation of Core Loan Yield |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loan interest income |  | $ | 187,566 |  |  | $ | 193,402 |  |  | $ | 179,971 |  |  | $ | 178,122 |  |  | $ | 159,440 |
Total accretable yield |  |  | (11,837 | ) |  |  | (15,100 | ) |  |  | (9,322 | ) |  |  | (10,162 | ) |  |  | (6,660 | )
Core loan interest income |  | $ | 175,729 |  |  | $ | 178,302 |  |  | $ | 170,649 |  |  | $ | 167,960 |  |  | $ | 152,780 |
Average loan balance |  | $ | 14,548,853 |  |  | $ | 14,144,703 |  |  | $ | 13,053,540 |  |  | $ | 12,814,386 |  |  | $ | 11,711,387 |
Core loan yield |  |  | 4.86 | % |  |  | 5.00 | % |  |  | 5.19 | % |  |  | 5.26 | % |  |  | 5.29 | %

(1) |  | Efficiency ratio is non-interest expense before foreclosed property expense and amortization of intangibles as a percent of net interest income (fully taxable equivalent) and non-interest revenues, excluding gains and losses from securities transactions and non-core items.

Page 10

Simmons First National Corporation |  |  |  |  |  |  |  |  |  | SFNC
Reconciliation Of Non-GAAP Financial Measures - Year-to-Date |  |  |  |  |  |  |  |
For the Quarters Ended |  |  |  |  |  |  |  |  |  |
(Unaudited) |  | Mar 31 |  | Dec 31 |  | Sept 30 |  | Jun 30 |  | Mar 31
|  | 2020 |  | 2019 |  | 2019 |  | 2019 |  | 2019
($ in thousands) |  |  |  |  |  |  |  |  |  |
Calculation of Core Return on Average Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income |  | $ | 77,223 |  |  | $ | 237,828 |  |  | $ | 185,119 |  |  | $ | 103,293 |  |  | $ | 47,695 |
Net non-core items, net of taxes, adjustment |  |  | (3,385 | ) |  |  | 31,738 |  |  |  | 13,373 |  |  |  | 11,236 |  |  |  | 1,381 |
Core earnings |  | $ | 73,838 |  |  | $ | 269,566 |  |  | $ | 198,492 |  |  | $ | 114,529 |  |  | $ | 49,076 |
Average total assets |  | $ | 20,920,223 |  |  | $ | 17,871,748 |  |  | $ | 17,140,419 |  |  | $ | 16,845,528 |  |  | $ | 16,302,197 |
Return on average assets |  |  | 1.48 | % |  |  | 1.33 | % |  |  | 1.44 | % |  |  | 1.24 | % |  |  | 1.19 | %
Core return on average assets |  |  | 1.42 | % |  |  | 1.51 | % |  |  | 1.55 | % |  |  | 1.37 | % |  |  | 1.22 | %
Calculation of Return on Tangible Common Equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income |  | $ | 77,223 |  |  | $ | 237,828 |  |  | $ | 185,119 |  |  | $ | 103,293 |  |  | $ | 47,695 |
Amortization of intangibles, net of taxes |  |  | 2,521 |  |  |  | 8,720 |  |  |  | 6,304 |  |  |  | 4,128 |  |  |  | 1,951 |
Total income available to common stockholders |  | $ | 79,744 |  |  | $ | 246,548 |  |  | $ | 191,423 |  |  | $ | 107,421 |  |  | $ | 49,646 |
Net non-core items, net of taxes |  |  | (3,385 | ) |  |  | 31,738 |  |  |  | 13,373 |  |  |  | 11,236 |  |  |  | 1,381 |
Core earnings |  |  | 73,838 |  |  |  | 269,566 |  |  |  | 198,492 |  |  |  | 114,529 |  |  |  | 49,076 |
Amortization of intangibles, net of taxes |  |  | 2,521 |  |  |  | 8,720 |  |  |  | 6,304 |  |  |  | 4,128 |  |  |  | 1,951 |
Total core income available to common stockholders |  | $ | 76,359 |  |  | $ | 278,286 |  |  | $ | 204,796 |  |  | $ | 118,657 |  |  | $ | 51,027 |
Average common stockholders' equity |  | $ | 2,869,177 |  |  | $ | 2,396,024 |  |  | $ | 2,323,530 |  |  | $ | 2,300,535 |  |  | $ | 2,248,898 |
Average intangible assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  |  | (1,055,498 | ) |  |  | (921,635 | ) |  |  | (896,236 | ) |  |  | (880,759 | ) |  |  | (845,688 | )
Other intangibles |  |  | (125,746 | ) |  |  | (104,000 | ) |  |  | (99,178 | ) |  |  | (97,221 | ) |  |  | (90,316 | )
Total average intangibles |  |  | (1,181,244 | ) |  |  | (1,025,635 | ) |  |  | (995,414 | ) |  |  | (977,980 | ) |  |  | (936,004 | )
Average tangible common stockholders' equity |  | $ | 1,687,933 |  |  | $ | 1,370,389 |  |  | $ | 1,328,116 |  |  | $ | 1,322,555 |  |  | $ | 1,312,894 |
Return on average common equity |  |  | 10.83 | % |  |  | 9.93 | % |  |  | 10.65 | % |  |  | 9.05 | % |  |  | 8.60 | %
Return on tangible common equity |  |  | 19.00 | % |  |  | 17.99 | % |  |  | 19.27 | % |  |  | 16.38 | % |  |  | 15.34 | %
Core return on average common equity |  |  | 10.35 | % |  |  | 11.25 | % |  |  | 11.42 | % |  |  | 10.04 | % |  |  | 8.85 | %
Core return on tangible common equity |  |  | 18.19 | % |  |  | 20.31 | % |  |  | 20.62 | % |  |  | 18.09 | % |  |  | 15.76 | %
Calculation of Efficiency Ratio (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-interest expense |  | $ | 125,813 |  |  | $ | 461,112 |  |  | $ | 319,017 |  |  | $ | 212,152 |  |  | $ | 101,409 |
Non-core non-interest expense adjustment |  |  | (1,306 | ) |  |  | (42,972 | ) |  |  | (18,104 | ) |  |  | (15,211 | ) |  |  | (1,870 | )
Other real estate and foreclosure expense adjustment |  |  | (319 | ) |  |  | (3,282 | ) |  |  | (2,219 | ) |  |  | (1,162 | ) |  |  | (599 | )
Amortization of intangibles adjustment |  |  | (3,413 | ) |  |  | (11,805 | ) |  |  | (8,535 | ) |  |  | (5,588 | ) |  |  | (2,641 | )
Efficiency ratio numerator |  | $ | 120,775 |  |  | $ | 403,053 |  |  | $ | 290,159 |  |  | $ | 190,191 |  |  | $ | 96,299 |
Net-interest income |  | $ | 167,483 |  |  | $ | 601,753 |  |  | $ | 434,687 |  |  | $ | 285,423 |  |  | $ | 135,995 |
Non-interest income |  |  | 82,394 |  |  |  | 205,031 |  |  |  | 159,401 |  |  |  | 74,726 |  |  |  | 34,792 |
Fully tax-equivalent adjustment |  |  | 2,305 |  |  |  | 7,322 |  |  |  | 5,150 |  |  |  | 3,307 |  |  |  | 1,601 |
Gain on sale of securities |  |  | (32,095 | ) |  |  | (13,314 | ) |  |  | (12,937 | ) |  |  | (5,563 | ) |  |  | (2,740 | )
Efficiency ratio denominator |  | $ | 214,198 |  |  | $ | 800,792 |  |  | $ | 586,301 |  |  | $ | 357,893 |  |  | $ | 169,648 |
Efficiency ratio (1) |  |  | 56.38 | % |  |  | 50.33 | % |  |  | 49.49 | % |  |  | 53.14 | % |  |  | 56.76 | %
Calculation of Core Net Interest Margin |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net interest income |  | $ | 167,483 |  |  | $ | 601,753 |  |  | $ | 434,687 |  |  | $ | 285,423 |  |  | $ | 135,995 |
Fully tax-equivalent adjustment |  |  | 2,305 |  |  |  | 7,322 |  |  |  | 5,150 |  |  |  | 3,307 |  |  |  | 1,601 |
Fully tax-equivalent net interest income |  |  | 169,788 |  |  |  | 609,075 |  |  |  | 439,837 |  |  |  | 288,730 |  |  |  | 137,596 |
Total accretable yield |  |  | (11,837 | ) |  |  | (41,244 | ) |  |  | (26,144 | ) |  |  | (16,822 | ) |  |  | (6,660 | )
Core net interest income |  | $ | 157,951 |  |  | $ | 567,831 |  |  | $ | 413,693 |  |  | $ | 271,908 |  |  | $ | 130,936 |
Average earning assets |  | $ | 18,581,491 |  |  | $ | 15,824,571 |  |  | $ | 15,174,671 |  |  | $ | 14,917,493 |  |  | $ | 14,440,091 |
Net interest margin |  |  | 3.68 | % |  |  | 3.85 | % |  |  | 3.88 | % |  |  | 3.90 | % |  |  | 3.86 | %
Core net interest margin |  |  | 3.42 | % |  |  | 3.59 | % |  |  | 3.64 | % |  |  | 3.68 | % |  |  | 3.68 | %
Calculation of Core Loan Yield |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loan interest income |  | $ | 187,566 |  |  | $ | 710,935 |  |  | $ | 517,533 |  |  | $ | 337,562 |  |  | $ | 159,440 |
Total accretable yield |  |  | (11,837 | ) |  |  | (41,244 | ) |  |  | (26,144 | ) |  |  | (16,822 | ) |  |  | (6,660 | )
Core loan interest income |  | $ | 175,729 |  |  | $ | 669,691 |  |  | $ | 491,389 |  |  | $ | 320,740 |  |  | $ | 152,780 |
Average loan balance |  | $ | 14,548,853 |  |  | $ | 12,938,013 |  |  | $ | 12,531,355 |  |  | $ | 12,265,936 |  |  | $ | 11,711,387 |
Core loan yield |  |  | 4.86 | % |  |  | 5.18 | % |  |  | 5.24 | % |  |  | 5.27 | % |  |  | 5.29 | %

(1) |  | Efficiency ratio is non-interest expense before foreclosed property expense and amortization of intangibles as a percent of net interest income (fully taxable equivalent) and non-interest revenues, excluding gains and losses from securities transactions and non-core items.

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